2018 (1) TMI 678 - AT - Service Tax

Classification of services - Interconnectivity user charges - Revenue held that such charges are liable to service tax under telecommunication service - Board clarification dated 12.3.2007 - Held that - the matter stands settled that prior to the amendment carried out in the definition for telecommunication service through Finance Act, 2007 such interconnectivity user charges cannot be charged under telecommunication service - demand not sustainable - appeal allowed.

Summary

The appeal was against an order by the Commissioner (A), Mangalore related to service tax on interconnectivity user charges for telecommunication services. The Tribunal held that prior to the 2007 amendment, such charges cannot be taxed under 'telecommunication service'. The impugned order was set aside, and the appeal was allowed.